As all Practices will now be aware, the employer rate of superannuation increased on 1 April 2019 from 14.9% to 20.9%. This will impact on GP partners as well as Practice staff.

It has been confirmed that this increase will not be a cost to Practices as funding will be provided to meet the increase. What is still not clear however, is the mechanism for calculating the refunds and timing of payments.

A further update was issued on the week beginning 25 March which advised discussions were ongoing between PSD, Scottish Government, SGPC and BMA to find a resolution. AISMA firms have also been consulted and we provided our comments.

Practices have been advised that their payroll systems require updates now for the employer rate change. They have also been requested to continue to remit the monthly superannuation contributions to the Scottish Public Pensions Agency (SPPA) by the due date of the 19th of the following month.

It is possible that Practices may receive funding for the increase in relation to GP partners that have opted out of the superannuation scheme. This would therefore be a net gain for such individuals and Practices. We have been notified that the legal position is currently being checked as to whether there is an obligation or not to provide such funding.

If you have any queries on superannuation, or any other financial matters, please do not hesitate to contact your usual Campbell Dallas advisor or:

Neil Morrison
01738 441 888

The information in this blog should not be regarded as financial advice. This is based on our understanding in April 2019. Laws and tax rules may change in the future.